MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING CAPSTONE PROJECT INDUSTRIAL MANAGEMENT PROPOSAL FOR SOLUTION AND IMPROVEMENT OF THE PURCHASING PROCESS AT MATAI VIETNAM CO., LTD LECTURER: NGUYEN PHUONG QUANG STUDENT: ĐINH SI HUNG SKL012382 Ho Chi Minh City, November 2023 HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF INTERNATIONAL EDUCATION THESIS PROPOSAL FOR SOLUTION AND IMPROVEMENT OF THE PURCHASING PROCESS AT MATAI VIETNAM CO., LTD ĐINH SỸ HƯNG Student ID: 19124040 Major: INDUSTRIAL MANAGEMENT Advisor: NGUYỄN PHƯƠNG QUANG, Senior Lecturer. Ho Chi Minh City, November 2023 HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF INTERNATIONAL EDUCATION COMMENTS OF ADVISOR ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- HCMC, 01/11/2023 Advisor i HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF INTERNATIONAL EDUCATION COMMENTS OF REVIEWER ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- HCMC, 01/11/2023 Reviewer ii HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF INTERNATIONAL EDUCATION ACKNOWLEDGEMENTS First of all, I would like to sincerely thank Ho Chi Minh City University of Technical Education, especially the teachers who have guide and support me in recent years and imparted their knowledge. valuable knowledge, skills as well as experience from practice so I can do research this thesis topic. I wish to show my appreciation to my instructor Mr.
Nguyen Phuong Quang has always been dedicated and helped me answering questions throughout the process of completing the graduation thesis. and one of my importance people Mr. Tran Van Thuan a Maintenance Manager now is working at Matai Vietnam CO., Ltd has supported me every time everywhere I need During the process of writing the graduation thesis, the author tried to implement as accurately as possible what he had experienced at the company as well as tried to avoid errors. However, practical experience is still young, so mistakes cannot be avoided.
We hope that teachers will ignore them. At the same time, during this research process, I also hope to receive valuable comments and contributions from teachers so that the author can improve better in the future. HCMC, 01/11/2023 Student name Đinh Sỹ Hưng iii LIST OF ABBREVIATION Abbreviation Explanation ABS757 Acrylonitrin butadien styrene 757 AR Accounts Receivable AP Accounts Payable ATP/CTP Available-to-Promise/ Capable-to-Promise ASP/MRP Average sales price/ Material resources planing BoM Bills of material CRM Customer relationship management CM Cash Management CO.,Ltd Company limited CPU Central Processing Unit DRP Disaster recovery plan EDI Electronic Data Interchange FSSC Food Safety System Certification FA Fixed Assets GL General Ledger HR Human resources IT Information technology ISO International Organization for Standardization MDS Master Damand Schedule MPS Master Production Schedule iv MPR Manufacturer's Production Run OM Order Management PC Personal computer PP/PE Polypropylen/ Polyethylen PO Purchase order QA Quality assurance RAM Random Access Memory VAT Value-Added Tax VGA Video Graphics Adaptor WIP Work in Process v LIST OF TABLES Table 1. 1 List of products of Matai Co.
2 Business performance of Matai Co. 1 List of raw materials for production of Matai in the last 3 months 2021. 1 Statistical table of losses due to machine downtime. 2 Material and cost for 1 day downtime.
61 vi LIST OF FIGURES Figure 1. 1 Organization of Matai Vietnam Co. 2 Business performance of Matai Co. 3 Manufacturing process of Matai Viet Nam.
1 Diagram of the purchasing process in a business. 2 Example of demonstrate BoM- Bills of materials. 1 4 types of Materials at Matai Vietnam. 2 3 types of material using purpose at Matai Vietnam.
3 Matai's quantity target accuracy chart from 2018-2021. 4 Accuracy of quantity of goods types according to production characteristics chart in 2021. 5 Chart about accuracy of purchases by intended use of Matai 2021. 6 Purchasing requirement sheet.
7 Chart about domestic purchase times in Matai in 2021. 8 Chart about Matai's overseas purchases in 2021. 9 Chart about purchasing time for a PO at Matai. 10 Repair cost chart for 1 month at Matai Vietnam.
11 Purchasing process at Matai Vietnam Co. 2 Diagram of INFOR CLOUDSUITE INDUSTRIAL solution modules. 3 Function of INFOR CLOUDSUITE INDUSTRIAL solution. 4 Diagram about how a process operate with Infor system.
5 Propose purchasing model diagram at Matai Vietnam. 6 Purchase request display of Infor system. 7 Manage quotes display of Infor system. 8 Manage PO contract of Infor system.
9 Goods receiving display of Infor system. 10 Manage purchase invoice of Infor system. 11 PO debt display of Infor. 77 vii TABLE OF CONTENT ACKNOWLEDGEMENTS .iii LIST OF ABBREVIATION.
iv LIST OF TABLES. vi LIST OF FIGURES. Scope and object. Structure of report .3 CHAPTER 1: INTRODUCTION ABOUT COMPANY .1 Information about Matai Vietnam Co.
History and development. Mission, vision and core value. Manufacturing activities at factory. 15 CHAPTER 2: LITERATURE REVIEW ABOUT PURCHASING MANAGEMENT16 2.
Purchasing activities in the supply chain. Concept of purchasing activities in the supply chain.2 Objectives and roles of purchasing activities in manufacturing enterprise. The importance of purchasing activities in manufacturing enterprise. Content of purchasing management in production and business enterprise.
Determine the purchasing needs. Finding and selecting supplier. Negotiate and place orders. Tracking and checking order.
Evaluating purchase result. Criteria for evaluating purchasing activities in the supply chain. MRP-Material Requirement Planning. Overview about MPR.
Input quantity of MPR. Implementation process of MPR. Output of MPR. Benefits and requirements of MPR.
Factors affecting purchasing activities in the supply chain. Purchasing methods and rules in production enterprise. Based on purchase size. Based on the form of purchase.
Based on credit. Based on material source.5 The rules ensure effective purchases. 41 CHAPTER 3: REALITY OF PURCHASING AT MATAI VIET NAM CO.1 Current status of purchasing activities in the supply chain in Matai Vietnam Co. Current status of species.
Current status of quantity. Current situation of time. Current status of cost. Evaluate purchasing activities at Matai Vietnam Co.
57 CHAPTER 4: PROPOSED SOLUTIONS TO IMPROVE THE PURCHASE PROCESS AT MATAI VIETNAM CO. Development orientation of Matai Vietnam in the coming time .1 Solution 1: Provide material backup measures. Solution 2: Building human resources. Solution 3: Information technology system.
RATIONALE Over the past decade, Vietnam has steadily gained prominence on the regional and global stage. For instance, in 2021, the country's GDP reached $366.58% increase compared to the previous year. Both before and after the pandemic, Vietnam demonstrated remarkable stability in GDP growth when compared to other Southeast Asian nations. In 2021, amidst the complex development of the Covid-19 pandemic, Foreign Direct Investment (FDI) inflow into Southern Vietnam reached $31.15 billion, an impressive 9.
The processing and manufacturing sector, which accounts for 47.5% of the total investment capital, was the most favored field. The trend suggests that registered investment capital is expected to see significant growth in the near future. As Vietnam's economy continues to evolve, foreign-invested enterprises operating within the country encounter a blend of opportunities and challenges. Consequently, competition between these businesses intensifies, necessitating the improvement of product quality alongside cost reduction efforts.
Recognizing this, the significance of a well-functioning supply chain for business development cannot be understated. Thus, establishing an effective supply chain is pivotal for businesses to thrive comprehensively and enhance their competitiveness in the market. In alignment with the nation's economic progress, Vietnamese businesses have made positive changes in their supply chain activities. However, it's notable that procurement activities have not received the same level of attention.
Yet, procurement is an indispensable component of supply chain operations and serves as a prerequisite for the functioning and growth of businesses. This issue persists in many industrial manufacturing enterprises, including Matai Vietnam. Matai Vietnam, an enterprise with Japanese investment, primarily engages in light industry packaging production. Upon working at Matai Vietnam, the author observed several notable weaknesses in its procurement activities that require rectification.
Addressing this matter entails a specific examination of the current operational status and the factors influencing procurement activities within the Matai Vietnam supply chain. From there, find the most influential factors and draw out the limitations in order to come up with solutions to improve purchasing activities in the supply chain. Stemming from that urgent need, the author 1 chose the topic "Improving the purchasing process at Matai Vietnam Co." as my thesis topic. OBJECTIVE Autor are applying SMART to through more detail about the thesis objective: - Specific: I will looking for inadequacies in the purchasing process at Matai Vietnam.
- Measurable: I will give suggestions for businesses to consider, apply a new technology and building a new purchasing department. - Achievable: The technology including Infor system and MiT service will make the process more modern and smoothly, the new department will help other part reduce the burden. - Relevant: I will discuss with the leadership departments how to apply and usefulness of the new system in the SCM process in general, and the specific roles that employees in the new purchasing department. - Time-based: I will make a report on the effectiveness after applying the info system every month and the satisfaction of the departments during the order trial period.
The goal of the research is to analyze the status of purchasing activities at Matai Vietnam Co. thereby identifying problems and issues that affect the purchasing activities and the damage it causes to the company production activities. From there, propose solutions to improve goods purchasing activities in the supply chain at Matai Vietnam. SCOPE AND OBJECT Research object: Raw material purchasing activities at Matai Vietnam Co.
Scope of space: SCM office of Matai Vietnam Co., Ltd Time scope: The study will be conducted during the period from August 2023 to October 2023. RESEARCH METHODOLOGY For this thesis, the author applied a simple quantitative analysis method according to the descriptive statistics method to evaluate purchasing activities at Matai Vietnam, thereby drawing out strengths and weaknesses in operations. Purchasing at Matai Vietnam to propose solutions to improve purchasing activities in the supply chain process. STRUCTURE OF REPORT The report includes an introduction, conclusion and main content divided into 4 chapter as follows: CHAPTER I: INTRODUCTION TO THE COMPANY CHAPTER II: LITERATURE REVIEW ABOUT PURCHASING MANAGEMENT CHAPTER III: REALITY OF PURCHASING AT MATAI VIET NAM CO., Ltd CHAPTER IV: PROPOSED SOLUTIONS TO IMPROVE THE PURCHASE PROCESS AT MATAI VIETNAM CO., LDCHAPTER 1: COMPANY OVERVIEW 3 CHAPTER 1: INTRODUCTION ABOUT COMPANY 1.1 INFORMATION ABOUT MATAI VIETNAM CO.
COMPANY Company name: Matai Vietnam Co. Address: Manufacturing area, Tan Thuan, Tan Thuan Dong, District 7, HCMC.jp Fax: (028) 37701775 Capital: 5,4 million USD Number of employees: 5 Japanese and 970 Vietnamese employees Factory 1: 20.000m2 Working time: • Mechanical department: 3 shifts 4 crews • Sewing department: 2 shifts (6:00-14:00, 14:00-22:00) Factory 2: 12.000m2 Working time: 2 shifts (6:00-14:00, 14:00-22:00) 1. HISTORY AND DEVELOPMENT. Matai Vietnam Co.
was established on March,1996 with 100% investing cost from Japan, the company has been operated for 25 years. With a scale of 10,000 m2 and an operating capacity of 20,000 products/month. In October 1998, the first factory expanded with 20,000 m2. The company continued to operate and aim to improve processes and products, and in December 2000, achieved the first ISO-9001 standard with an increased operating capacity of 50,000 products/month.
Company continuous to upgrade manufacturing the new product name “Neopallex bag”. On January, 2003 and set the target for 60. With the results and achievements achieved, the company has not stopped making efforts to improve productivity and as a result, 10 years of establishment of the company (March 1996-March 2006) the company has grown its productivity from 20,000 to 80,000 products/month, increasing 4 times.